economy

business

Number of registered companies increases

la prensa

On-line registration has made it easier for people to start their own companies.

There were 761 more companies registered at the end of June 2009 than at the end of June 2008, according to statistics from the Ministry of Trade and Industry.

Between June 25, 2007 and June 25, 2008, there were 19,868 firms registered which reported a combined $687 million in investment. Between June 25, 2008 and June 25, 2009, that number grew to 20,629 businesses with investments totaling $717 million.

This is "extraordinary," said Delfín Aparicio, executive director of the Panamanian Microfinance Network, "especially in a year of crisis, when other companies in most countries are closing, merging or making strategic alliances to be sustainable."

The majority of the companies, 67.7 percent, are located in Panama City. There are 10.6 percent registered in Chiriquí, while the remaining 21.6 percent are located in the other provinces. Most of the companies are in the service and retail sectors.

Panama recently allowed businesses to register on the Internet through the site www.panamaemprende.gob.pa. According to government officials, this has cut red tape and costs, making it easier to start a company.

Officials with the National Union of Small and Medium Enterprises said that the new registration method is easier, and it has been one of the primary reasons that Panama's number of businesses has grown.